Functions of Sport Management and Marketing

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C H A P T E R
10
Sport Management and
Marketing Agencies
William A. Sutton, University of Central Florida
Nicole Fowler, National Basketball Association
Mark A. McDonald, University of Massachusetts Amherst
Chapter 10
Introduction
• A sport management and marketing agency
is a business that acts on behalf of a sport
property
• More appropriate term is sport and lifestyle
management and marketing agencies
• Early history of agencies
• Arrival of IMG
Functions of Sport Management and
Marketing Agencies
• Some agencies perform only one function
(or a few)
• Some agencies perform all functions
• Agency functions
– Client management and representation
– Client marketing and product endorsement and
placement
(continued)
Functions of Sport Management and
Marketing Agencies (continued)
• Agency functions
– Event creation and development
– Event management and marketing
– Property representation and licensing
– Television development and production
– Negotiation of media contracts
(continued)
Functions of Sport Management and
Marketing Agencies (continued)
• Agency functions
– Strategic planning, sponsorship solicitation and
consulting
– Hospitality management services
– Grassroots and participatory programs
– Research and evaluation
– Financial planning and management
Sidebars
• Sport Marketing as Part of a Communication
Strategy
• Sponsors Report and the NTIV Analysis
Types of Sport Management and
Marketing Agencies
• Thousands of agencies and quasi-agencies
• Vary in size, budget, type of clientele, and
scope of services
• Types include full service, general,
specialty, and in-house
• See table 10.1
Full-Service Agencies
• Full range of services
– Client management, event creation, TV development
– Sponsorship solicitation, hospitality services
– Research and evaluation, financial planning
• Perform function in house with own
personnel
Full-Service Agency: IMG
• History
• Client management
• Event management and marketing
• Television
• Corporate marketing
General Agencies
• Integrated approach to development of client
programs
• Business components of 16W Marketing
– Athlete, coach, and broadcaster marketing and
representation
– Team and venue services
– Corporate consulting and property marketing
– Hospitality and event management
Specialty Agencies
• Velocity Sports & Entertainment
• SportsMark Management Group Ltd.
In-House Agencies:
Professional League Departments
• Departments that perform sport functions
on behalf of the parent company
• Have only one client: themselves
• Function as gatekeepers in reviewing
opportunities presented to them
• Work with other units of the corporation
International Sidebar
• Marketing the Beijing Olympic Games
• Helios Partners consulting company
– Contract negotiations to secure sponsorship rights
– Created a marketing roadmap
– Implemented plan
– Sample client: Lenovo
• International Learning Activities
Practical Application
• Critical thinking in agency activities
– In-house vs. outsourcing options
– IMG College
• Ethics in agencies and revenue sources:
advertising by spirit brands
Careers in Sport Management and
Marketing Agencies
• Careers are diverse and challenging
• Entry requirements
• Educational background
• Required skills
Figure 10.2
Challenges Facing Sport Management
and Marketing Agencies
• Major challenges
– In-house versus outsourcing
– Conflicts of interest
– Mergers and acquisitions
– Labor unrest
• Top 10 issues that agencies must address
Three Review Questions
1. What are the functions performed by sport
management and marketing agencies?
2. How are specialty agencies different from
full-service sport management and
marketing agencies?
(continued)
Three Review Questions (continued)
3. Founded in 1960, IMG benefited from being
the first and best-known sport
management and marketing agency. Which
events reviewed in this chapter have
affected the competitive situation faced by
IMG?
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